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Canada Revenue Agency Collection Problems

Dealing with CRA collections can be complex and difficult. If you're dealing with CRA collections tax problems, Farber Tax can help. Our Ex-CRA tax specialist and tax consultants know their stuff! Contact Farber Tax today!

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Canada Revenue Agency Collection Problems


If you’re dealing with CRA tax problems, Farber Tax Solutions can help. Our tax specialists, tax accountants, and tax consultants can help you see how to deal with CRA collections and resolve your situation.

Fill out the web form or call us to get started.


How to Deal with CRA Collections Problems


Not only is it difficult to communicate and negotiate with the Canada Revenue Agency (CRA) but the agency itself is very powerful and it knows it. Anytime a person or business has to deal with a bureaucracy it can become very unfair very quickly. If they have more knowledge than you, they have more power. This is especially true when it comes to the CRA. Not only is the agency incredibly experienced when it comes to tax law, the CRA statute of limitations, and negotiating tactics, but it also has very strong powers that it uses to influence negotiations.

The CRA can garnish your wages, seize your assets, place a lien on your property, or freeze your bank account if you owe tax debt and do not pay. The strong CRA collections powers are used as a threat during negotiations. CRA agents know that, if they raise the idea of any of these serious consequences, they are more likely to be able to convince you to agree to their terms.

We change that unfairness. When the CRA comes to collect, our team is ready. We have the knowledge, skill, and experience necessary to even the playing field. We know how to use tax law (including the CRA statute of limitations) to our advantage.


The CRA Collections Process


If you owe tax debt, there is typically a process that the agency follows when it comes to collect.

A Canada Revenue Agency collection situation will usually begin with a letter that contains some type of demand: financial disclosure, proof/evidence of something claimed, payment of a tax debt, demanding a filing, etc.

The difference between a tax problem and a tax nightmare boils down to two things: responding quickly but also on an informed basis. Making a mistake at this critical juncture can be devastating. That’s why it’s crucial that you work with experienced professionals who understand the CRA collections process and how to best navigate it.

Our services ensure that you do not make matters worse while trying to deal with these issues. CRA agents are notoriously difficult to communicate with at the best of times. When there is an outstanding tax debt involved, they become even more tough. The Collection Officer’s job is to collect money quickly and close the file. If you are not able to pay the debt when it is due, you will be faced with significant penalties and interest charges. If you still cannot pay, the agency will take collections actions against you. These actions can be very damaging and they can hurt your financial situation for a long time.

Working with an experienced tax professional is crucial to resolve your tax problem quickly and properly.

It becomes even more important in situations where the CRA is alleging that you purposely tried to mislead them when it comes to your income taxes. If a bookkeeper you used was not up to snuff, if there was some income you didn’t declare, if you lost your receipts, or if you wrote off more expenses than what you may have been entitled to, you could be in very serious trouble. The CRA takes these issues very seriously and can even file criminal tax evasion charges against you, depending on your situation.

At this point, working with a professional is a must. There are incredibly serious implications if you are found guilty of tax evasion, including potential prison time.


Handling the CRA


If you owe tax debt that you cannot pay, your first instinct might be to ignore the agency. However, the CRA will not simply go away and the agency will not “forget” about your debt. In fact, it is incredibly unlikely that the CRA will allow your debt issue to fade away.

While there is a CRA statute of limitations that is detailed in the Income Tax Act, this fact rarely helps people or organizations who owe the CRA money. According to the Act, the CRA may not commence or continue to collect a tax debt if no action has been taken to collect the debt for 10 years. However, each action taken by the CRA (such as any correspondence regarding the debt) resets the clock. This means it is very difficult to “wait out” the CRA. Instead, it is best to handle the issue and resolve your tax problem. Our team can help.

If you are ignoring Canada Revenue Agency collection communications, it’s likely because you are afraid of the consequences that may be associated with the type of tax problem you have. It may also be that you need more time to come up with the money to pay. Whatever the reason is, ignoring a Canada Revenue Agency collection problem will result in collection action whether they know what you owe them or not.

Avoiding the CRA doesn’t prevent interest charges, penalties, and collection actions from taking place. The only way to solve your tax problem is to deal with the CRA – and the best way to do that is to work with our team.

Remember, Canada Revenue Agency collection action is not only used as a method to collect debt  – it is also used as a way to make you comply with CRA requests. Most people will agree to an unfair deal or an incredibly strict payment plan when the CRA vows to seize assets if you do not, for instance.

But it doesn’t have to be that way. If you have a tax problem, you should seek representation immediately. Click here to contact us now. We can help.

Here are some of the types of collection action that we routinely help with:

  • Demand letters
  • Requests for personal financial disclosure
  • Frozen bank accounts
  • CRA garnishment to wages
  • Property liens
  • Garnishment notices sent to your customers


Farber Tax Solutions can help you successfully deal with CRA problems. We utilize the experience of our tax experts to:

  • 1| Offer a comprehensive solution that is focused on achieving the most favourable possible outcome for your tax issue;
  • 2| Communicate with the CRA on your behalf and navigate the entire CRA dispute process; and
  • 3| Offer a complete solution to your tax problems, including ex-CRA professionals in affiliation with tax lawyers from Farber Tax Law.